The process of creating a new mortgage loan — from application through underwriting to funding.
Full Definition
Mortgage origination refers to the entire process of creating a new loan: taking the application, collecting documents, running credit, ordering the appraisal, underwriting, and ultimately funding the loan. The term is also used to describe the volume of new loans created — a lender or MLO might say they 'originated $20 million last quarter.' Loan origination is regulated under the SAFE Act, which requires all individuals originating mortgage loans to be licensed through NMLS. Origination fees (also called origination points or loan origination fees) are a separate cost — a charge the lender collects for creating the loan, typically 0.5–1% of the loan amount.
Related Terms
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